Mike Kresse | Monday, October 3, 2016
IDC predicts that SaaS enterprise applications will be a $50 billion market by 2018. There is no question that there is increasing demand for cloud-based systems across many different types of enterprise solutions, including CRM systems, billing solutions and treasury management solutions. Credit and collections is no exception – and in fact, it’s an area particularly well suited to a cloud-based approach.
Because it’s not a core competency for most companies, the IT spend allocated to the credit and collections department is often a small fraction of their overall IT spend. IT teams rarely have the time needed to maintain or upgrade credit and collections management systems. As a result, credit managers may not feel they are getting the attention they need in-house.
When companies realize that the care and feeding of a credit and collections management system is not part of their core competency, the decision is often taken to have a specialized credit and collections vendor deploy and manage the solution via a private cloud or SaaS deployment model. This allows companies to free up internal IT resources to focus on core business applications and helps reduce total cost of application ownership.
In the European market, cloud-based systems are becoming the de facto choice for CTOs and CIOs. In North America, however, companies tend to be more evenly split between those who fully embrace cloud technology and those who are keen to keep their technology in-house.
Companies in the latter group may be committed to managing technology in-house across the board. However, it’s always worth exploring the benefits that cloud systems can bring, particularly where receivables are concerned. A service provider specializing in this area will be equipped to analyze large volumes of data and deliver specific solutions for different geographies – enabling companies to focus on the key skillsets needed for each of their disparate markets.
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